SHARING ECONOMY MASTERCLASS IS THIS THE END OF TOURISM AS WE KNOW IT? ITB MARCH 2017 MANOLIS PSARROS - CEO @TOPOSOPHY
IN THIS PRESENTATION: Sharing Economy Key Drivers & Challenges Sharing Economy TrendWatch & Regulatory Updates 7 Key Take-aways for the Tourism Sector
KEY DRIVERS & CHALLENGES
Global economy in transition Global economy in transition
Current economic models aren t working
The Future of Work?
Moving to a circular economy model
Sharing economy: "an economic model based on sharing underutilized assets from spaces to skills to stuff for monetary or non-monetary benefits'
Growing consumer demand
52% aware of P2P platforms
among those, 2 in 5 think the access to services is more conveniently organized
Basically it s about value for money..
THE CASE OF AIRBNB 129 million guests $1.6 billion this year. IN THIS PRESENTATION:
Airbnb is worth as much on paper as Marriott International
Airbnb s fast climbing valuation
60m bookings by 2020 from 10m today
growing to become 2 nd largest provider TOP HOTEL AND SHORT TERM RENTALS VALUE SALES 2011-2020
not just airbnb
P2P platforms are rapidly moving into new sectors
TOURISTS & VISITORS ARE SHARING MORE (and they like it)
Percent of Leisure Airbnb Renters Completely Satisfied With Elements of Last Airbnb Stay
Millennials Lead the way THE FASTEST GROWING CUSTOMER SEGMENT IN THE TOURISM INDUSTRY, EXPECTED TO REPRESENT 50% OF ALL TRAVELERS BY 2025
Access Vs Ownership
not just millennials
Gen Z is following
SE is heavily funded TOTAL MARKET FUNDING: 12+ BN 2010-2016 TOP-50 START-UPS STOCK MARKET EVALUATION: 130+ BN
Access to the White House is Helpful too!
EUROPEAN COMMISSION OFFERING 24B to 'Help Risk-Takers Make The Leap' to a Circular Economy
DISRUPTION REMAINS A POLICY PRIORITY (Horizon 2020, SME instrument).
EU GUIDELINES IN COLLABORATIVE ECONOMY The collaborative economy creates new opportunities for services providers, innovative entrepreneurs and existing companies. It leads to greater choice for consumers, and often lower prices in the market. It can also contribute to increasing economic, social and environmental value of idle assets and resources, and increasing employment through more flexible job schedules. In some cases, the emergence of new business models impacts existing markets, creating tensions with existing goods and services providers. In part this stems from uncertainty relating to applicable regulation, e.g. on licensing, consumer protection, taxation, social security and employment models
Sharing economy or simply the new economy? SE expected to equal traditional rental economy s revenue growth by 2025
Growth brings challenges
41% not knowing who is responsible in case a problem arises EUROPEAN COMMISSION FLASH BAROMETER 438
LEGISLATION APPROACHES CUSTOMIZED WAIT&SEE SELF-REGULATION HEAVY-HANDED
Amsterdam: Non-compliance with STR regulations by around 20% of hosts brings a 60-day limiter
London: cap of 90 days per year and an Amsterdam-style limiter for non-registered hosts
Paris: online maps facilitate registration and monitoring
Barcelona: fines to p2p platforms for allowing unlicensed accommodation a key issue recently.
Berlin: recent decision to ban its residents from letting their flats on Airbnb limited to primary residences only by the local court
ARE P2P PLATFORMS AND THEIR USERS PAYING THEIR FAIR SHARE?
Airbnb s Roadmap on working with governments
More responses to be expected further to Airbnb s recent intention to secure tax deals with 700 cities
HOW THE TOURISM SECTOR REACTS?
Traditional tourism sector requests for a level playing field
But what if.. you can disrupt the disruptors?
ACCORHOTELS CEO: It s Foolish and Irresponsible to Fight Against the Sharing Economy
BUSINESS CULTURE This is where the world is taking us. All of those new services are very powerful and very well implemented and executed. You need to embrace it. S.BAZIN, CEO ACCOR
SHARING MARRIOT ECONOMY & LIQUIDSPACE & TOURISM
BUSINESS CULTURE This is where the world is taking us. All of those new services are very powerful and very well implemented and executed. You need to embrace it. S.BAZIN, CEO ACCOR
If we are already working with OTAs why not Airbnb? Is there a first mover advantage to joining Airbnb? D. KONG, BEST WESTERN CEO
7 KEY TAKEAWAYS
GET THE FULL PICTURE UNDERSTAND HOW THE SHARING ECONOMY WORKS IN YOUR DESTINATION
EMBRACE WITH CAUTION
PUT LOCAL PEOPLE FIRST
BUILD PARTNERSHIPS WITH GOVERNMENT, RESIDENT GROUPS, TRAVEL SECTOR AND P2P PLATFORMS
NO ONE-SIZE FITS ALL APPROACH DIFFERENT PLACES,DIFFERENT NEEDS
DISRUPT THE DISRUPTORS & FOCUS ON YOUR USPs
INTEGRATION IS COMMON SENSE NOT A STRATEGY
THANK YOU